5 Strategies to Combat Uncertainty and Recession-Proof Your Small Business
Even the most successful and lucrative businesses are impacted by economic conditions. Recessions are caused by factors largely outside of your company’s control, and the impacts are often industry-wide, national, and even global.
There are still some strategies business owners can implement to protect their company’s finances during tough times. Continue reading to learn more.
- Have financing in place for your business — ideally before you need it. Find a reputable funder who can meet you where you are and help you establish a path forward. Learn more about determining your annual finance needs here.
- Take control of your cash flow. Many businesses experience some form of seasonality — whether that means one season is busier than others, week-to-week sales are inconsistent, or the industry itself is simply seasonal by nature. When business owners apply for funding with us, one of their top concerns is what happens if their sales are to drop — either short-term or for a prolonged period. Luckily, our products are designed so that your repayment amount is based on your revenue and not a set dollar amount. While loans charge you a fixed number each month, Merchant Cash Advance (MCA) payments can fluctuate with your sales. This means more flexibility in repayment and more room to breathe.
- Analyze the market for growth opportunities. Many great products and services have been created during recessions. Use the economic uncertainty to examine new verticals for your business or other growth opportunities you can capitalize on.
- Monitor the financial health of your key clientele. Short-term success for your company lies in whether or not your customers are actively spending money on your products/services. Being aware of their buying habits and financial wellness will help you become more agile and ready for potential economic slowdowns.
- Review and project your numbers regularly. Keep a close eye on your projections and pivot, scale, or cut back when needed.
Bottom line — when the landscape shifts, your process and strategy must shift, too. We all know change can be difficult, especially in the midst of uncertainty, but try to remember that change goes hand in hand with growth.
Elevate Funding is a Merchant Cash Advance (MCA) provider. MCAs allow you quick access to your future sales in exchange for a percentage of your daily sales. An MCA is not a loan – it’s simply a way to get access to your future sales immediately.
If you need funding and wish to speak to someone now, please call us at 888-382-3945 or click here to send us an inquiry. One of our teammates will get back to you as soon as they are available.
______________
Revenue-Based Finance is formerly and alternatively known as Merchant Cash Advance, or MCA.
Previous Post
Next Post